As American state, city, and county governments, begin to become greedy little children over the $350 Billion the Federal Government is “handing out for COVID relief” to “spur a national recovery from the economic toll of COVID-19.” I wanted to take a minute and speak some reality to the situation. Let us logically review what has happened since November 2019 in the light of a non-partisan, apolitical review. I urge you to take what is said, conduct your own research, and come to your own conclusions. As Dumbledore said, “I could be as wrong as Humphrey Belcher, who believed the time was ripe for a cheese cauldron.”
- COVID-19 started in Wuhan Province, China. It was delivered around the world by the Chinese Government’s intentional decision to allow travel while infectious. The virus was further enhanced by the political nature of Government, the intrusion of Government, and the mass hysteria whipped up by the global media. Power-hungry people looked upon a virus with a 99.02% survivability rate and saw a golden opportunity to seize power from those who elected them to office.
These are basic COVID-19 facts that have never been refuted, and the adults in the room have recognized the power-mad politicians and the media usurpers from the beginning of the “pandemic.” While politics continues to play an over-sized role in COVID, while people are still suffering, and while some “normality” is breaking out, the money spent to date will eventually need to be repaid, and no one is discussing this problem. Worse, more money is being printed and pumped into the economies of the world to “spur growth,” and this is never good fiscal policy!
- Printing money causes inflation. Too much money, not enough goods, raises prices beyond sustainable limits to rebalance the economy; hence inflationary prices will continue until excess money is absorbed. This is a fundamental economic fact everyone should know. Money is created through several processes, but printing it to throw at a problem, does not resolve the issue; it only prolongs the misery of the original problem. The original problem was not COVID-19 but a runaway government from the Obama reign, where the economy stalled, the money pumped in did nothing, and a recession dragged on artificially due to the political hands in the economy. The same problem from Obama’s reign will lead to the same economic issues under the fraudulent president.
- Fiscal insanity is not fixed by Federal impropriety and investment. Too many states, California, Illinois, Michigan, New York, Maine, and so many others, are in dire financial straits. However, their fiscal health was already failing before COVID-19. Investment by the Federal Government will not change the underlying issues and make a fiscally insane state fiscally sane. In fact, the opposite will occur; the funds being handed to the states under the auspices of “spurring growth” will exacerbate fiscal problems. More to the point, the excess money in the markets will mean more financial problems for the rest of the United States, which will bleed into the global economy!
You cannot buy your way out of fiscal problems! The only answer to spur growth is to reduce Government! Reduce regulations! Reduce the intrusion of Government! Eliminate taxes! Instead, the same tired act is being performed, print money, give it to the states, complain about inflationary prices, blame the rich, and increase taxes! The only thing the Trump Presidency proved, without a shadow of a doubt, if America can get the millstone of Government off her neck, her economy BOOMS! Yet, what has Washington and too many state capitals done, doubled down on policies that do not work and try to call this “progress.”
Agree or disagree, your choice and your consequences. I have made my case; the money being pumped into the states will lead to inflationary prices, above and beyond a sustainable level. The states all have sticky fingers and wet lips looking for these funds. Sure, there are many promises regarding how these funds will be spent. Still, I guarantee most of the promises are empty. The politicians will have their special interests fed first—leaving the citizens to pay exorbitant fees for food, clothing, housing, services, and products until the extra money is consumed, which might occur sometime in the next 5-years at a minimum. Who benefits, nobody! Who loses, everyone!
© 2021 M. Dave Salisbury
All Rights Reserved
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